840.51 FC 22/12–844
The Ambassador in Ecuador (Scotten) to the Secretary of State
[Received December 13.]
Sir: I have the honor to report that a Ministerial Resolution was published in the Official Register of September 29, transferring the funds held in blocked accounts from the Central Bank to the National Bank of Development.
In accordance with Executive Decree No. 291 of July 15, 1944, it was provided that twenty-year non-transferable bonds might be issued against funds held in blocked accounts.
In order to increase the available capital of the National Bank of Development, the Government has decided to turn the funds held by the Central Bank in blocked accounts over to the National Bank of Development. It is understood that up to the present time no bonds or other securities have been issued by the National Bank of Development [Page 1086] against the funds thus received, but it is understood that this action is contemplated.
It is reported that approximately 11,000,000.00 sucres were held in the blocked accounts in the Central Bank. In agreement with the Director of Blocked Properties, 9,000,000.00 sucres were transferred to the National Bank of Development in accordance with the decree referred to. The remaining funds will be held in the Central Bank to provide for the payment of monthly allowances for living expenses authorized under previous legislation.
A copy of the Ministerial Resolution as published in the Official Register of September 29 is attached, together with a translation.96
Respectfully yours,
Commercial Attaché
- Not printed.↩